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Wealthy Investors Understand Wealth Management

Wealthier investors have a better grasp of what wealth management services are and should be, a Spectrem report shows.

Spectrem’s Ezine Wealth Management reveals that although 70 percent of all investors claim to be familiar with the term “wealth management”, 81 percent of Ultra High Net Worth investors (with a net worth between $5 million and $25 million Not Including Primary Residence) are familiar with the term to just 59 percent of Mass Affluent investors (with a net worth between $100,000 and $1 million NIPR).

UHNW investors are also more likely to think positively about the term “wealth management.” Asked to impression of the term on a sliding scale, with “0” as negative and “100” as positive, the UHNW investors tagged it at 67.22 while the Millionaire investor (with a net worth between $! Million and $5 million) had it at 64.81 and the Mass Affluent investor had it at 63.65.

Sixty-five percent of UHNW investors agreed or strongly agreed with the idea that wealth management services were appropriate for them, while only 53 percent of Millionaires agreed with that statement.

Only 10 percent of the UHNW investors disagreed with the statement.

The wealthiest investors also seem to understand the need to pay for wealth management services. Asked to respond to the sentence “Wealth Management makes me believe I am paying too much for the services”, 28 percent disagreed. Only 21 percent of Millionaires disagreed.

The wealthiest investors are far more likely than the other wealth segments to receive their wealth management services from a bank (19 percent) or a brokerage firm (34 percent). The Mass Affluent and Millionaire investors were far more likely to receive wealth management services from a financial planning firm.

Wealthier investors have a better grasp of what wealth management services are and should be, a Spectrem report shows.Spectrem’s Ezine Wealth Management reveals that although 70 percent of all investors claim to be familiar with the term “wealth management”, 81 percent of Ultra High Net Worth investors (with a net worth between $5 million and $25 million Not Including Primary Residence) are familiar with the term to just 59 percent of Mass Affluent investors (with a net worth between $100,000 and $1 million NIPR).UHNW investors are also more likely to think positively about the term “wealth management.” Asked to impression of the term on a sliding scale, with “0” as negative and “100” as positive, the UHNW investors tagged it at 67.22 while the Millionaire investor (with a net worth between $! Million and $5 million) had it at 64.81 and the Mass Affluent investor had it at 63.65. Sixty-five percent of UHNW investors agreed or strongly agreed with the idea that wealth management services were appropriate for them, while only 53 percent of Millionaires agreed with that statement.Only 10 percent of the UHNW investors disagreed with the statement.The wealthiest investors also seem to understand the need to pay for wealth management services. Asked to respond to the sentence “Wealth Management makes me believe I am paying too much for the services”, 28 percent disagreed. Only 21 percent of Millionaires disagreed.The wealthiest investors are far more likely than the other wealth segments to receive their wealth management services from a bank (19 percent) or a brokerage firm (34 percent). The Mass Affluent and Millionaire investors were far more likely to receive wealth management services from a financial planning firm.